Tools to Limit Potential Liability
Evaluate the economic merit of a trade with extreme speed and accuracy. See it through the eyes of an investor, advisor, or regulator. Head-off issues before they become problems.
Model It Before You Trade It
Run “what-if” scenarios on a trade sequence, fund’s pricing profile, or platform’s fee schedule. Our Trade & Compliance Analyzer helps ensure that a trade is suitable from a regulatory perspective. Our Trade Surveillance Tool helps ensure it is suitable from a corporate perspective.
Know in advance if value is maximized, cost is minimized, and conflicts are eliminated. If you can’t view trades this way, or address the issues below, then your firm is taking–on tremendous unnecessary risk. It is also leaving a ton of money on the table.
Trade & Compliance Analyzer
Ensure the economic and regulatory merits of trades
Create pricing guidance and sales limits so advisors suggest, and clients select, the right account or share. In disputes, know in advance if the math supports your trade or the opposing claim has merit. Model ETF, fund, and stock trades in terms of account value, cost, and pay. They are Reg BI metrics, so trade-level compliance is easy. Handles account and product fees, benefits like ROA and LOI, turnover, waivers, pay scales, and more. Results match the regulators. Audited by CPAs and a securities lawyer. Federal regulators license the math.
Trade Surveillance Tool
Identify problem trades prior to execution or settlement
Evaluate daily trade runs to identify costly ones, conflicts of interest, and outlier values. Trades run vs. specific reasonably available alternatives or generic bogeys. View results in terms of account value, cost, and advisor pay. Set pay and cost triggers to create exception reports. Then quickly determine the minimum pricing change so that the trade satisfies firm and regulatory guidelines. Trues to regulatory tools.
Liability Reducing Uses for Our Tools
- Measure conflicts of interest at the point of sale, over time, and redemption
- Ensure that trade value is maximized, cost minimized, & conflicts eliminated
- Equalize pay so a client is indifferent between any two share choices
- Equalize pay so a client is indifferent between brokerage & advisory accounts
- Set C-share sales limit by account tax status, conversion term, and horizon
- Convert C-shares at B/D level to optimize client wealth & protect firm revenue
- Avoid across-the-board sales limits for shares, especially below $250,000
- Document and archive exacting Care Obligation efforts and decisions
- Document and archive Conflicts of Interest Obligation efforts and decisions
- Quantify redemption-oriented, or back-end, bait-and-switch conflicts
- Measure conflicts inclusive of account and product level sources
- Measure conflicts in current & discounted dollars, to protect a firm’s advisors
- Reflect serial commission payments to an advisory fee or C-share equivalent
- Demonstrate the economic advantages of clean shares in advisory accounts
- Identify a case of reverse churning and set the optimal remedial pricing level
- Enhance trade-level compliance with federal and state due diligence rules
- Identify a prohibited transaction and reverse it optimally for the firm & client
- Minimize the loss to investors if clean-shares omit shareholder benefits
- Help clients choose the right share class for their exact horizon & tax status
- Confirm the economic merit of moving clients who trade to advisory accounts
- Confirm the corporate merit of moving clients who trade to advisory accounts
- Ensure that prospectus share class suitability text is validated by the math
- Validate textual and numeric claims in sales material and prospectuses
- Forensically evaluate a single share class or account-type recommendation
- Forensically evaluate a firm’s aggregate share or account recommendations
